Team Goemkarponn
PANAJI: The Goa Chamber of Commerce and Industry (GCCI) has called for the IT Act to be simplified and its provisions thoroughly examined, stating that the Income Tax Act, 1961 has become complicated due to its frequent modifications.
The GCCI praised the government’s effort to streamline the Income Tax Act, 1961 in a pre-budget memo sent to Union Finance Minister Nirmala Sitharaman. However, the GCCI also recommended that the Act be reexamined to make sure it is tax-neutral or offers taxpayer relief, with grandfathering provisions to facilitate a seamless transition to the updated system.
In order to prevent interruptions in the middle of the year, it has also suggested that changes should go into effect at the start of the fiscal year.
The GCCI has proposed a PAN-based TDS system for simplicity of compliance and the implementation of a TDS wallet system for advanced payments, as well as the consolidation of the TDS and TCS sections to decrease complexity with standard rates and thresholds.
In order to support India’s manufacturing sector, the trade body has called for the elimination of cesses and surcharges that raise the overall tax burden. It has also suggested raising the basic income tax exemption limit and Section 87A rebates to Rs ten lakh under the new regime, as well as extending the concessional 15% tax rate for new manufacturing companies.
The trade group, which has called for help for MSMEs, has suggested that Limited Liability Partnerships (LLPs) be granted presumption taxation benefits and that private firms’ conversion criteria to LLPs be loosened in order to facilitate business transactions.
The GCCI has suggested a single GST rate of 12% for hotel accommodations for the tourism industry. Additionally, restaurants would be able to pick between 5% GST without input tax credit (ITC) and 12% GST with ITC.
